China responded to the United States trade rules by disapproving Washington’s move to the supremacists of its foreign investment supervisory body. The Chinese administration expresses fears that this move means that the US will use general security apprehensions unlawfully to confine Chinese investments. Chinese Tech industries investing in the US are the targets of the new investment rules. The recent trending trade wars have sparked retaliation in imports and exports between China and the US. The levies are valued at $34 billion.
The Trump administration imposed tariffs on its allies a month ago which, has brought heat-ups in trade. All Washington’s trade associates vowed to retaliate in case president Trump refused to evoke the new rules. Following Trump’s declination, countries in the European Union and China began strike backs on certain US commodities. These trade wars have affected the Forex platform with investors avoiding risks given the deteriorating value of currencies against the greenback.
The US President Donald Trump whispered his support on the legislation that would magnify the influences of the Committee on Foreign Investment in the US (CFIUS). CFIUS exists as an inter-agency group that inspects the state security and effects of trade deals resulting in foreign proprietorship of US firms. The president has the mandate to cease agreements if recommended by the body. However, in run-through, a lousy CFIUS outcome only is so often sufficient to halt a deal. In a statement, Mr Trump hailed the move claiming that it was combat for the predatory venture practices menacing the US tech industry, and future economic fortune.
Deals that would pose a threat to the US tech prosperity can be halted by the stretched out role of CFIUS legislation. The critical striking point in the US and China trade tensions revolves around intellectual property. For long the US has been accusing China of stealing the country’s tech. The legislation is highly opposed by China with Gao Feng, saying China will monitor it to evaluate its potential impact on Chinese firms. Gao is the Chinese Commerce Ministry spokesman. According to BBC, China is the primary investor in the US which should exempt it from harsher foreign investment legislation.
China has been focusing on its initiative, Made in China 2025, that focuses on tech progress. Since the election of Trump, Chinese investment depreciated with values from the Rhodium Group showing a more than 90% fall in 2017. China’s investment in the US totaled $24.2 billion in 2017 according to the American Enterprise Institute (AEI).